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Rising Home Values and High Ownership in Zip Code 79039: Groom's Rural Real Estate Dynamics
CATEGORY
Property Value
DATA
Percent Owner Occupied
Housing Prices
Median Rent
Population
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Property Value
Percent Owner Occupied
Housing Prices
Median Rent
Population
Zip code 79039, located in Groom, Texas, has experienced significant fluctuations in population and housing dynamics over the past decade. This rural area has seen a general trend of decreasing population density, coupled with interesting shifts in homeownership rates and housing prices.
The homeownership rate in zip code 79039 has remained relatively stable, with slight fluctuations between 2013 and 2022. In 2013, the homeownership rate was 86%, which decreased slightly to 78% by 2022. This overall stability in homeownership rates suggests a consistent preference for owning homes in this area, despite some minor variations. During this period, average home prices have shown a gradual increase. By 2022, the average home price in the area was $122,118.
Federal interest rates have played a role in shaping homeownership trends in zip code 79039. From 2013 to 2020, interest rates remained historically low, ranging from 0.09% to 2.16%. This period of low interest rates corresponded with relatively high homeownership rates in the area, consistently above 80%. However, as interest rates began to rise sharply in 2022 (1.68%) and 2023 (5.02%), we observed a slight decrease in homeownership rates to 78% in 2022, suggesting that higher borrowing costs may have impacted some residents' ability or willingness to purchase homes.
Renter percentages in zip code 79039 have shown an inverse relationship to homeownership rates. The percentage of renters increased from 14% in 2013 to 22% in 2022. Interestingly, average rent prices have fluctuated significantly during this period. In 2013, the average rent was $704, which increased to $913 in 2015, then decreased to $655 in 2016. By 2022, the average rent had risen again to $822. These fluctuations in rent prices don't seem to correlate directly with the gradual increase in renter percentages, suggesting that other factors, such as local economic conditions or housing availability, may be influencing rental trends.
Looking at the most recent data, the average home price in zip code 79039 was $120,660 in 2023 and $119,236 in 2024. This represents a slight decrease in home values over these two years. Concurrently, federal interest rates have continued to rise, reaching 5.33% in 2024. This combination of declining home prices and rising interest rates could potentially impact future homeownership rates in the area.
Applying predictive models to forecast 5-year trends, we anticipate that average home prices in zip code 79039 may continue to experience modest fluctuations, potentially stabilizing around the $120,000 mark. Rent prices are expected to follow a similar pattern of moderate variability, likely remaining within the $800 to $900 range. These predictions are based on the historical data trends and current economic conditions.
In summary, zip code 79039 has maintained a strong preference for homeownership despite recent challenges such as population decline and rising interest rates. The area has experienced notable fluctuations in both home prices and rent costs, reflecting the dynamic nature of its housing market. The coming years may see a continued balancing act between homeownership rates and rental demand, influenced by broader economic factors and local demographic shifts.
